Maxim Group initiates coverage on Co-Diagnostics stock with Buy rating

Investing.com - Maxim Group initiated coverage on Co-Diagnostics (NASDAQ:CODX) with a Buy rating and a $1.50 price target on Wednesday, representing over 300% upside from the current price of $0.35. InvestingPro data shows the stock has experienced high volatility but has gained over 40% in the past six months despite trading near its 52-week low.

The molecular diagnostics company is developing programs based on its proprietary Co-Primer technology, with its PCR Pro point-of-care platform as the lead driver. Maxim Group describes the platform as "paradigm-shifting," bringing gold-standard RT-PCR testing in a sub-$1000 desktop device with results in approximately 30 minutes.

Co-Diagnostics’ U.S.-focused upper respiratory tract infection panel addresses Flu A, Flu B, COVID, and RSV, while its international tests include HPV and Mycobacterium tuberculosis. The URTI panel is currently in clinical trials, with other tests expected to enter registrational studies by year-end 2025.

The company has established global reach through international distribution for Vector Control and its prior COVID-19 kits, including joint ventures in the Middle East and North Africa (CoMira) and India (CoSara). The Indian joint venture is under evaluation for a potential spinout, which Maxim views as a "potential value-creating event." According to InvestingPro data, Co-Diagnostics holds more cash than debt on its balance sheet with a current ratio of 3.81, though revenue has declined significantly with only $0.51 million in the last twelve months.

Maxim Group believes the PCR Pro represents "potentially revolutionary technology" that could expand the market by enabling smaller sites to join the diagnostics value chain, with their analysis focusing on the upper respiratory opportunity in the U.S. and the tuberculosis opportunity in India. Despite the positive outlook, InvestingPro reveals that analysts anticipate continued sales decline this year and do not expect profitability, with the company’s overall financial health rated as weak. Investors seeking deeper insights into Co-Diagnostics’ prospects can access the comprehensive Pro Research Report, available for this and 1,400+ other US equities.

In other recent news, Co-Diagnostics reported its third-quarter earnings for 2025, showing a revenue decrease to $0.1 million from $0.6 million in the same period last year. The company’s earnings per share (EPS) stood at -$0.16, aligning with analysts’ expectations. This significant drop in revenue marks a challenging period for Co-Diagnostics as they navigate through the financial year. Analysts have not provided any upgrades or downgrades following this earnings report. The focus remains on how the company will address the revenue decline in the coming quarters. These developments are crucial for investors keeping a close watch on the company’s financial health. No additional company news or mergers have been reported at this time.

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